All the messages posted are really inetersting to read. Myself being an NRI have noticed one crucial issue because of Rupee rising. Over the last 6 months there has been a 9% drop in Dollar to Rupee conversion. At the same time we are talking about curbing inflation in India by sticking to this rise in rupee against dollar. My Recent visits to India did not made me realise such a drop in Inflation levels in India, infact the country is going out of control. although Salary levels have been inflated to unimaginable levels, but general Public doesnt seem to be getting benefit out of it. Still the basic infrasturcture,fuel,cooking gas,etc is jumping sky high levels. The interest rates for bank deposits not very attractive, the housing intrest rates rising high. Taxation structure getting very complicated and not in proportion to salary levels being offered presently. There is struggle at every step for even the basic neccessities ? SO WHERE DOES THIS RUPEE RISING BENFITTING GENERAL PUBLIC????????? The Economy going strong because of strong rupee !!!!?????It looks like economy is bulldozing common public instead of making them strong. There is chaos and literally a sense of unrest among those NRI's who are conributing huge funds back home through currency Exchange back to India. They are not only adding to their wealth but at the same also bring in huge foreign exchange back to India. So isnt it right for them benefit being working away from Home. Think about it.....
RE:Rupee rising
by Mitul Mehta on Jul 25, 2007 11:39 AM Permalink
i dont agree... with rupee going strong against the dollar, the common man stands to have more economic power at a global level. Which also means that the domestic market will be even more lucrative for businesses.
It will also be cheaper for the government to invest in infrastructure (very much required) without much help from World Bank and therefore saving on interest costs.
The only ones who take the pinch are NRIs earning in Dollars. But that is just a handful.
The day INR appreciates to 20/$, flights to US will go empty.
Your Idea of flights going empty to US may happen, but flights may go to some other countries like Canada etc etc. With the volume of population India, even if 1Rs=1$ there is not going to be any change of people migrating.
RE:Rupee rising
by Vijeth CM on Jul 25, 2007 11:35 AM Permalink
Sameer, the real reason for inflation is 1) the companies/govt. which is benefit from the falling rupee do not pass on the benefits to the common man - they neither reduce prices of their products, nor improve the quality. 2) Low interest rates, easily available loans and rising income levels have led to the inflation.
However, with a little more patience, our country will surely benefit, may be during the next budget? 3)
RE:Rupee rising
by Niranjan Arsid on Jul 25, 2007 12:32 PM Permalink
What is the benefit to the country with the huge foreign exchange? This huge money is creating huge demand for each and every commodity. If you have more paying capacity then, naturally demand for the commodity rises. This way, only people like you are able to maintain a rich lifestyle and forget about the poor and people with lower incomes, cannot even think of spending like you do.
